íLondoneursí to go it alone in new ventures

Nearly half of Londoners have considered starting-up their own business and 27 per cent are planning to launch their ventures in the next 3 years, according to a new survey conducted by Business Link for London, the small business advice and support service for the capital. The survey uncovers interesting trends about where people seek advice, how they plan to raise money as well as their recipes for success.

The 2004 Londoneurs Survey is an opinion poll of 241 Londoners, building a picture of entrepreneurship in the capital. Conducted by market research firm MRUK, key top line findings are:

Londoners want to ëdo their own thingí ñ Half of respondents said they liked the idea of being their own boss but only 25 per cent wanted to start a business to earn more money

Emerging ëGrey Entrepreneursí ñ 16 per cent of 50-60 year olds are considering starting a business to see them into retirement, highlighting a new category of entrepreneur

Londoners not scared of hard work ñ Expectations of first year salaries are realistic with 1 in 3 estimating a salary below 25,000. 75 per cent agree that running a business is a lot harder than being an employee and 51 per cent thought that they would be working over 40 hours per week

Lack of advice a barrier ñ 1 in 3 admit that not knowing where to go for help and advice is one of the biggest barriers to launching their enterprise and consequently, family and friends are the first ports of call for start up advice

Londoners admit ëcosts confusioní ñ 1 in 4 respondents could not estimate how much money they thought it would cost to start a business and 24 per cent thought it would cost more than 25,000. 1 in 10 would start a business with an overdraft.

Black and Minority Ethnic (BME) groups leading the way ñ BME respondents are twice as likely to start a business in the next 3 years compared with the white population. They are also far more loyal to London, with 73 per cent preferring to set up business within London compared with only 43 per cent of the white population.

ìOur Londoneurs Survey provides a fantastic insight into tomorrowís entrepreneurs,î said Judith Rutherford, Chief Executive at Business Link for London. ìLondonís entrepreneurs are increasingly drawn from all ages and ethnic backgrounds and while they seem to be bursting with great business ideas, our survey shows they are being realistic about the hours they will need to work and the money that they will earn while getting their businesses off the ground.î

However, the research does show that there are still a few perceived barriers to starting up in business:

Knowing where to get advice and start up capital is the biggest barrier for Londoners. The research shows that 1 in 3 people still depend on family and friends for initial seed finance and for their main shoulder to lean on

Confusion exists amongst budding entrepreneurs about the costs involved with starting up a business. Over 20 per cent of respondents could not estimate what start up costs might be and 24 per cent seem to think that whatever the nature of business, they would need more than 25,000 to get their idea off the ground

ìThere seems to be two ends to the scale in terms of awareness of start up funding. Many people simply donít realise the costs involved, but just as many people seem to be over-estimating what it takes to get things moving,ì added Judith Rutherford. ìThere is a whole network of start up finance experts readily available to the public in their local area to help advise on schemes and grants available to budding entrepreneurs and to ensure that their business idea can be made ëfinance readyí for fundingî.

Comparing results of the survey to business reality does seem to show that good intentions are not always followed up when businesses are launched. For example, steps like market research (66 per cent) and developing a business plan (2 out of 3) are seen as very important by Londoneurs although, in practice, few businesses go through the correct procedures when launching a new venture.

ìWe come across many businesses who donít do the basic research and planning before they start trading which quickly leads to big problems that sometimes spell the end of a great idea. External help and advice, as well as support from family and friends is one of the keys to successî, said Judith Rutherford.

Business Link for Londonís Pre-Start and Start up Service is funded by the European Social Fund and London Development Agency and delivered by a network of local enterprise support partners across London. Via Business Link, these agencies will put individuals in touch with a dedicated business adviser who will conduct a diagnostic assessment of the business idea and help develop a business plan. Access to training courses and ongoing mentoring programmes are then available as the venture develops.

For more information about starting a business in London call 0845 6000 787 or visit